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Originally Posted by aceventura3
No. A supply-sider would look at the question based on how to maximize utility. Given the theory that speculators were exploiting the market, releasing the oil as the prices increased would have made some sense from a supply side point of view as it would have addressed two issues - profit maximization for the treasury and reducing the excessive risk premium being used by speculators.
As it stands now, he lost about a 30% profit for the treasury and the risk premium had already started a reduction based on market forces.
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Well, you know what they say—you can't time the market.
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You see, this is the problem with trying to micro-manage the economy.
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I think you mean "macromanage."
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On one hand, he wants to end dependance on fossil fuels, but he wants to end the recession by lowering the burden of the costs of fossil fuels - perhaps to a level below the true costs.
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One is a long-term issue, the other is a short-term issue.
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On one hand he wants to encourage the use of alternatives like hybrids and public transportation, but he wants people to fire up their RV's to go to the Gran Canyon.
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One is a long-term issue, the other is a short-term issue.
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so, at the end of the day what does all this really accomplish - nothing! That is - nothing at best - most likely there is waste or inefficiency in these policy decisions and much bigger unintended consequences.
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I don't think I'm the only one who disagrees with your opinion.